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Variables are observable and measurable. An employee’s education level is a variable. A parameter is a numerical property of the model (not of the example or the data point). A hyper-parameter is a value we (the analyst) set as an input to the machine learning algorithm. Hyper-parameters are conceptually similar to architectural blue prints that guide the construction process. The machine learning algorithm uses those hyper-parameters when it is training the model. We usually set or tune these hyper-parameters through trial and error or more objectively using a Python algorithm.

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